Canada markets open in 4 hours 16 minutes
  • S&P/TSX

    19,991.88
    +105.94 (+0.53%)
     
  • S&P 500

    4,207.27
    -2.97 (-0.07%)
     
  • DOW

    33,336.67
    +27.16 (+0.08%)
     
  • CAD/USD

    0.7840
    +0.0004 (+0.05%)
     
  • CRUDE OIL

    94.10
    -0.24 (-0.25%)
     
  • BTC-CAD

    30,541.66
    -888.49 (-2.83%)
     
  • CMC Crypto 200

    569.07
    -5.67 (-0.99%)
     
  • GOLD FUTURES

    1,802.00
    -5.20 (-0.29%)
     
  • RUSSELL 2000

    1,975.26
    +6.01 (+0.31%)
     
  • 10-Yr Bond

    2.8880
    0.0000 (0.00%)
     
  • NASDAQ futures

    13,385.75
    +74.50 (+0.56%)
     
  • VOLATILITY

    20.08
    +0.34 (+1.72%)
     
  • FTSE

    7,505.74
    +39.83 (+0.53%)
     
  • NIKKEI 225

    28,546.98
    +727.65 (+2.62%)
     
  • CAD/EUR

    0.7609
    +0.0021 (+0.28%)
     

2 Cryptos That Could Benefit From Ethereum’s Merge More Than Ethereum

·3 min read
cryptocurrency, crypto, blockchain
cryptocurrency, crypto, blockchain

Written by Chris MacDonald at The Motley Fool Canada

The Ethereum (CRYPTO:ETH) blockchain is all set to merge with its Proof-of-Stake (PoS) Beacon chain. The probable date for this update is Sep. 19, according to Ethereum foundation member Tim Beiko. This merge will bring Ethereum into the world of PoS blockchains.

A PoS consensus mechanism is the more energy-efficient mechanism, which secures and validates blocks. However, Proof-of-Work “mining,” or validation, which Ethereum currently employs, requires significant computing power to solve complex mathematical problems to accomplish the same goals. More computing power means more energy usage and greater environmental impact.

Thus, Ethereum is on track to become much more efficient (both from an energy standpoint as well as functionality). However, there are other projects that may benefit more from this merge than Ethereum itself.

Let’s dive in.

Ethereum Classic

One of the questions many crypto investors have with respect to this merge is, where will all of Ethereum’s miners go?

As it turns out, Ethereum Classic (CRYPTO:ETC), a fork of the original Ethereum blockchain, is likely to garner interest. That’s because this blockchain is very similar to Ethereum, requiring minimal hardware upgrades from current Ethereum miners to migrate over.

Assuming this is the case, Ethereum Classic could see increased interest from investors over time. That’s because Ethereum Classic could be viewed as a more secure blockchain and a realistic alternative to Ethereum (as a hedge, in case something goes wrong with the merge). These factors, along with significant investments from current Ethereum miners of late, suggest this is a token with room to run.

Lido DAO

Lido DAO (CRYPTO:LDO) is an interesting project to consider on its own. This liquid staking solution allows investors with small amounts of Ethereum to stake on the Beacon Chain. Currently, the requirements to stake Ethereum are high — 32 ETH are required. That’s more than $50,000, in today’s prices.

Lido essentially aggregates prospective Ethereum takers, allowing for greater diversity within staking pools. Users receive staking rewards, as well as stETH (Lido Staked Ether), for their troubles.

The problem is, stETH is redeemable for ETH only after the merge takes place. There’s a lockup period, and with uncertainty around the merge date (which has been continually pushed back), as well as liquidity issues, Lido has seen investor concern grow.

That said, with more certainty around what could be a Sep. 19 merge date, investors appear eager to lock in their ETH in exchange for stETH. Should this continue, Lido could be a key beneficiary of this move, to a much greater degree than Ethereum.

The post 2 Cryptos That Could Benefit From Ethereum’s Merge More Than Ethereum appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Ethereum Classic?

Before you consider Ethereum Classic, we think you’ll want to hear this.

Our nearly S&P/TSX market doubling Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.

Want to see if Ethereum Classic made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

See the 10 Stocks * Returns as of 4/14/22

More reading

Fool contributor Chris MacDonald has positions in Ethereum. The Motley Fool recommends Ethereum and Lido DAO.

2022

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting